The Other Side of the May Jobs Report: Higher Wages

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These aren’t real pay gains, they’re inflation. It’s absolutely astounding to see an article like this not use the word, “inflation” even one time.

[deleted]

The government is paying people to stay home…those people are disproportionately low wage earners. Increasing the average wage by removing low wage earners from the calculation is a farce, don’t believe the hype.

eristic1

Here is my take. Realize it is basic Econ but think it shows where we are headed. All the excess benefits to the unemployed have shifted the supply side of labor up. couple that with an increase in demand for all consumer goods bc of the extra $ from above and $~4k in direct payments. That demand for goods and services drives demand through supply chains. Couple that with low supply of raw materials and components due to Covid impact on workers and companies over the past 15 months Housing is different to me. People realize life is short and crowds suck, and can work from home. so time to put yourself in a better living environment Then add loose economic policy with artificially low interest rates we have so many supply and demand shifts at once that the inflation shock is real. Expect it will take at least ~12 months to find our new equilibrium in the US. And then we have the issue of global supply chains catching up. I wouldnt buy houses, cars or anything at these new artificially high prices. Cash is losing value every day but investments are also over priced. All that has to correct….. Expect Crazy times ahead for investors …..better to break from the herd early. They are going to run off a cliff Normally I would just trust the editorials in the economist to explain all this but now they are partisan and don’t want to print anything provocative.

chevytruck-798

expenses up 25% but we got the lower class an extra 5% in wages. what a win

jerrywagnersfo